The Value of Electricity Reliability: Evidence from Battery Adoption
In this working paper, the authors obtain a revealed-preference estimate of the willingness to pay for electricity reliability via uptake of rooftop-solar-plus-battery-storage systems in wildfire-prone areas of California.
To avoid electric-infrastructure-induced wildfires, millions of Californians have had their power cut for hours to days at a time. We show that rooftop solar-plus-battery-storage systems increased in zip codes with the longest power outages. Rooftop solar panels alone will not help a household avert outages, but a solar-plus-battery-storage system will. Using this fact, we obtain a revealed-preference estimate of the willingness to pay for electricity reliability, the Value of Lost Load, a key parameter for electricity market design. Our estimate, of around $4,300/MWh, suggests California's wildfires-prevention outages resulted in losses from foregone consumption of $322 million to residential electricity consumers.
On the Issues — Feb 23, 2024
On the Issues: Housing Policy, Dam Removals, and More
A biweekly newsletter connecting global current events, pressing climate and energy policy news, and economics research from RFF scholars. This week: housing policy, dam removals, and more.
Resources Radio — Feb 13, 2024
Our Homes and Our Climate, with Carlos Martín
Carlos Martín discusses the importance of housing issues in environmental policy, climate resilience, and decarbonization in the United States. He describes the challenges of balancing climate adaptation in residential communities with necessary investmen
Media Highlight — Feb 5, 2024
Smithsonian Magazine: “Six Big Ways Climate Change Could Impact the United States by 2100”
RFF Fellow Matthew Wibbenmeyer comments on the threat of climate-driven wildfire.